Managing Service and Manufacturing Operations

Managing Service and Manufacturing Operations.

  1. Develop written responses for the three Responding to Business Challenges Discussion Questions on page 248 of the text
  2. What are some of the advantages Ashley realizes from owning its own fleet of delivery trucks?

Ashley has advantages brought by the fact that she owns her fleet of delivery trucks. It ensures that she is able to make on time deliveries of goods to her customers and also be able to reduce the overall miscellaneous costs. Ownership of their own trucks gives them an advantage of designing them based on the way they want to make loading and off loading much easier. Based on the aspect, they have been able to design tilting mechanisms that speeds up the loading of furniture.

  1. How does Ashley foster high satisfaction rates among its delivery drivers? Why is this important?

Ashley has an integrated supply chain with logistics which ensures that the drivers work is mostly predictable. Through it, drivers are oftenly given some time to spend with their family. The aspect ensures that they are quite satisfied and therefore they can deliver their services effectively whenever they are called upon.

  1. Should all companies strive to own their own supply chains? When is outsourcing parts of the supply chain appropriate?

All companies should not apply forces of ensuring that they own supply chains. The reasons behind it are that not all companies are capable of purchasing the fleet of trucks. Some companies which have not developed enough should consider that they outsource the supply chains since it reduces cost and ensures efficiency. Only big companies which experience stiff competition and are making high profits should ensure that they own their own supply chains.

  1. Develop written responses for the Revisit the World of Business questions on page 258 of the text.

1) How does Chipotle’s made-to-order menu increase organizational complexity?

                      Chipotle a business that is involved in serving farm grown local ingredients to customers have increased their operational cost regardless of them attracting more healthy minded customers. The company has its outlets over the world prepare different types of food items like guacamole from scratch. The activities of chopping all ingredients such as lettuce, tomatoes are quite tedious. After all that they are supposed to prepare the whole meal in front of the customers which means the company has highly invested on its resource more than other restaurants.

2) Why does Chipotle prepare menu items in front of customers?

The aspect of preparing the menu in front of the customers is done to ensure that customer satisfaction is upheld. The food is portioned right before e the customers so that they can uphold transparency. In addition the customers are given a chance to commend on the kind of preparation that they would like their food to adapt so that they can enjoy the meal.

3) Why does Chipotle employ strict cooking, preparing, and serving guidelines for its food?

Most of the ingredients that the restaurant use are quite expensive therefore they employ strict cooking , preparing and serving guidelines to ensure that there is minimum wastage of the food items,. The company does it to also maintain the high quality meal that they are branded for and ensure that they adhere to the hygiene and safety rules of handling foods.

  1. Develop written responses for the following Check Your Progress question from page 259 in the textbook: CYP 1, 2, 3, and 6.

1) What is operations management?

                      Operations management refers to the process whereby the development and the administration of the activities which are used to transform goods to services are done.  The process involves a lot of activities such as transformation planning and designing, managing logistics quality and productivity.

 2) Differentiate among the terms operations, production, and manufacturing.

Manufacturing and production are terms that can be used interchangeably. They always refer to the activities that are undertaken for the purpose of making tangible goods and products from, raw materials. On the other end operation refers to a broader term that describes the process and activities which results to making of both tangible and intangible products.

3) Compare and contrast a manufacturer versus a service provider in terms of operations management

Both a manufacturer and the service provider have the mandate of transforming inputs into outputs. However the service provider will be different in the fact that they intend to have close customer contact because the service delivery frequently happens at the point of consumption.  On another aspect the inputs that they use are abet variable than those used by the manufacturers.  In addition the service providers tend to be involved in a lot of labour work

 6) What criteria do businesses use when deciding where to locate a plant?

The criteria that are employed on the aspect of location of a plant would be based majorly on the proximity of the area to the market. The other factor that should be considered is the availability of the raw materials, availability of transport network, power, and labour among others. All these factors will form a baseline decision that each should be considered before location of a plant on an area.

  1. Develop written responses for the three Discussion Questions found in Assignment 8 folder for the Toyota See for Yourself Videocase and Discussion Questions

1) Describe how taking risks to increase its operational capacity turned Home Run Inn pizza into the top player in the frozen pizza industry.

                      Home run pizza business chose to expand in the year 1950s. They decided to do this by taking a risk of automating their operational organisation. After the business realised if they needed to grow they must expand, they introduced automated ovens and conveyers that ensured they have large quantity of production. Through this the company became big and successful through distributing of pizza to more than 20 states.

2) Why is Home Run Inn able to compete at prices higher than its rivals’?

                      The company have made good priorities of marketing by ensuring that they focus on the product aspect of the marketing element. There pizzas have been sold at higher prices and still get returns since they use all natural ingredients in making them. In addition they use homemade sauce, sausage and cheese which customers are attracted to. The most important thing is that they have been able to differentiate their products from other pizza company and therefore retaining their higher demand.

3) Why has self-distribution been so beneficial for Home Run Inn? Do you think it would be successful for every manufacturing company?

Through the company employing self distribution mechanisms they have raised in the market share from 8% to 28% over time. The main reason is because they have been able to make their products available to all their retail shops and even other shops. Through it their shops have adequately received the products in time and therefore ensuring that customers have them anytime they need. If manufacturing companies can afford their on distribution mechanisms it can be better since they will reach more of their customers in time. However if they cannot, they should outsource some supply chain to increase distribution scope.


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